We hereby report on some of the most interesting changes in the area of labor law introduced by Budget Law 2021, Law No. 178 of Dec. 30, 2020, specifically summarizing the provisions related to:
Payroll deduction (Article 1, paragraphs 8-9)
Contribution exemption for hiring young people under 36 (Article 1, paragraphs 10-15)
Contribution exemption for hiring women (Article 1, paragraphs 16-19)
Fund for exemption from social security contributions owed by the self-employed and professionals (Article 1, paragraphs 20-22)
Supporting the return to work of working mothers (Article 1, paragraphs 23-24)
Paternity leave (Article 1, paragraphs 25, 363-364)
Contribution exemption for agricultural entrepreneurs and young direct farmers (Article 1, paragraph 33)
Decontribution South (Article 1, paragraphs 161-169)
Extension and renewal of fixed-term contracts (Article 1, paragraph 279)
Extension of Covid layoff treatments (Article 1, paragraphs 299-314)
Layoff freeze until March 31 (Article 1, paragraphs 309-311)
Interprofessional expansion contract (Article 1, Section 349)
ISCRO (Article 1, paragraphs 386-401)
Frail workers (Article 1, paragraphs 481-484)
Pension provisions (Article 1, paragraphs 336-339)
Baby bonus (Article 1, paragraph 362)
Contribution to mothers with disabled children (Article 1, paragraph 365)
The provisions apply from January 1, 2021.
Payroll deduction (Article 1, paragraphs 8-9)
In order to structurally revise the deduction system, the deduction introduced in 2020 is stabilized, which provides for a tax deduction, for 2021, of 1,200 euros at a total income of 28,000 euros, reproportioned for incomes between 28,000 euros and 40,000 euros.
Contribution exemption for hiring young people under 36 (Article 1, paragraphs 10-15)
In order to promote stable youth employment, the measure of contributory exemption for new permanent hires and for the conversion of fixed-term contracts into permanent contracts of young people, introduced by the 2018 Budget Law, for the two-year period 2021-2022 is recognized to the extent of 100 percent, for a maximum period of 36 months and in any case within the maximum limit of €6,000.00 per year, with reference to individuals who, on the date of the first incentivized hiring, have not reached the age of thirty-six years.
The period in which the exemption is available is increased to 48 months if the hiring involves a worker whose place of employment is located in one of the following regions: Abruzzo, Molise, Campania, Basilicata, Sicily, Apulia, Calabria and Sardinia.
Contribution exemption is available to employers who have not, in the six months preceding the hiring, nor proceed, in the 9 months following the hiring, to individual dismissals for justified objective reasons or to collective dismissals in respect of workers classified with the same qualification in the same production unit.
The effectiveness of these provisions is subject to approval by the European Commission.
Finally, the above exemption does not apply in the case of confirmation of the apprenticeship contract at the end of the training period, as well as for permanent hires, occurring within 6 months of the acquisition of the qualification, of students who have carried out alternating school-work activities1 or a period of apprenticeship for the professional qualification and diploma with the same employer, the upper secondary education diploma, the certificate of higher technical specialization or periods of apprenticeship in higher education, for which the exemption from the payment of contributions at the rate of 50 percent remains valid in the maximum amount of 3.000 euros on an annual basis, for a maximum period of 12 months, provided that the worker has not reached the age of 30 on the date of continuation (in fact, the normative provision of Article 106 of Law 205/2017 remains valid; in this case, the exemption is applied starting from the first month following the expiration of the contribution benefit linked to the apprenticeship contract).
Contribution exemption for hiring women (Article 1, paragraphs 16-19)
For the hiring of female workers carried out in the two-year period 2021-2022, on an experimental basis, the exemption introduced by Law No. 92/2012 is recognized, recognized to the extent of 100% and in any case within the maximum amount of € 6,000.00 annually.